Downtown Seattle condo inventory (new construction) is continuing to shrink.

The Gallery condos in Belltown are about to reach their final closeout.  They have just 1 remaining unit.  It is a 2-story townhome style condo that had been used as the sales office for a little over a year.  The large 1,142 sq. ft. unit is at ground level.  It has a one bedroom loft with a den and is being offered at $399,900.  See the listing here:  Unit #120

This is all great news for Belltown condo owners as the neighborhood will not see a new condo project for years. Overall, as the new construction inventory shrinks, owners all of the city will benefit.  There are less then 300 new units available for purchase.

Here is a current look at the condo inventory in Belltown:

More details on unit #120:

Gallery is advertising just 10 units until they reach their sellout.  For any of your interested, they are offering some sales incentives until the end of the month.  Gallery is located at 2nd and Broad, has 233 units on 13 floors.  The amenities include storage, secured parking, 24 hour concierge, guest suites, business center, fitness facility, homeowners lounge, view terrace and ground floor retail.

It has been reported that the Gallery “Auction” that turned into a one-day sales event ended with 8 sales averaging discounts of $.88 cents on the dollar.  The developers website has called it a “Successful One Day Event”.  The success of the event is a matter of opinion.  I think what is much more fascinating is the last minute change to the auction format.  News broke Friday, March 4th, that the auction format was changed to a “Buy Now” sales event.  So the day before the auction, prospective buyers had to re-think their strategy if they were going to purchase a unit at the 13 story, 233 unit building.  From personal experience, there are weeks of preparation that goes into pre-auction prep.  It takes time to tour the units, commit to the financials and to prepare for the potential outcome of a bidding war with other competitors.  So why did they change the format the day before the auction?

The easy consideration is that the “demand” simply wasn’t there for a successful event. As I mentioned and cautioned in a post in early February this was truly a sale of 25 studios.  Open one bedrooms are really just studios; period.  Demand was always going to be an issue as this type of floor plan does not work for everyone.  I don’t really believe that the “demand” was the only reason for the 11th hour change in format.

I think the biggest contributor was the 460,000 square foot lease signed by Amazon.com.  It was press released on Friday/Saturday and was highly covered by major news sources over the weekend including CNBC, Yahoo business, Business Wire and many other national and local publications.  So what does an office tower, Amazon.com and the Gallery have in common?  Schnitzer West is the developer owner of both the 1918 office tower and the 233 unit Gallery Condominiums.  Even if demand was the biggest issue, being flush with cash on a lease that nearly occupies the whole 36 story structure built in 2009 doesn’t hurt.  In fact the Amazon lease alone was nearly 70% of the entire building.  It sat near empty for months and months.

At the end of the day, in my opinion that lease gave the developer confidence to sit on the 35 units.  Instead of selling them at $.70 cents on the dollar they can let the demand of the market absorb them over time.  It was a business decision.  With all the new employment coming to South Lake Union, it’s probably a pretty safe bet.

I believe this was first reported by Matt this morning.  It definitely caught me by surprise.

Gallery has changed their auction format in the 11th hour.

This won’t be a “game changer” as it was already obvious that demand for the units offered had been relatively low.  With that being said, it is still news at the last minute for anyone interested in buying tomorrow at auction.  I just spoke to a representative of the sales team and its obvious that they don’t know exactly how this will all shake out. Here are the basics:

• Buyers can preview the homes from 9 am – 2 pm both today and on Saturday, March 5th.
• Prospective buyers and investors can sign in at the Gallery Sales Center starting at 2 pm on Saturday, March 5th and you will be assigned a number on a first come, first serve basis to participate in the offering.  (when I spoke to Melissa, she confirmed this format)
• The “buy now” offer presentations will begin at 2:30 pm on March 5th at Gallery (not at the hotel as previously scheduled)

This is where it gets interesting.  Once you have you “scheduled” your time slot, you sit with a representative from the ownership group or the auction team and you present your offer.  I asked how flexible they are going to be with pricing and she said that those details have not been worked out.  I asked if the pricing would start at the same opening bid numbers and she also did not confirm if that was the case.  If anyone would like to hear my opinion on how to successfully approach this format, I will have some time to discuss this afternoon.

Here are some previous posts to get you up to speed on the auction:

GALLERY PRESS RELEASE

READ BEFORE YOU BUY

As the upcoming auction at Gallery looms, another sales incentive has been announced (3% buyer bonus).   I looked into the fine print and their disclosure says Buyers must qualify, other restrictions may apply. See Auction Information Center for details.

With over 25 units to sell I can understand the urgency to ensure all units are sold.  I’m anxious to see how the traffic of this auction compares to other events in the past.  As you may recall, this auction will feature only 0pen 1 bedrooms (studios).

Here are some previous posts to get you up to speed:

Gallery Press Release

A Sale Of 25 Studios

Click here to view active listings, previous solds and to read more about Gallery.

UNITS FOR SALE AT THE UPCOMING AUCTION:

For those of you interested in seeing the total sales/available inventory at Gallery, I’ve included the information below. There doesn’t seem to be as much of a buzz around this auction as some of the previous Seattle auctions.  Do you agree?  Any thoughts on why this is the case?

With the auction at Gallery just around the corner, I’d like to share with you some of my thoughts as you decide if this is the right purchase for you.  First and foremost, buying a home is a very personal decision.  To each and everyone one of you, the experience will be different.  Most importantly, you have to feel that the unit fits your lifestyle (size, space, view, storage, function etc..)

What is interesting about the upcoming Gallery Auction is that it really is a sale of  studios.  I have shared my opinion of studios in the past (A Studio In Seattle = Square Peg In Round Hole).  Open 1 bedrooms in my opinion are just a fancy way of saying “studio”.  I have warmed up to the idea that studio’s have a purpose in Seattle, but I still have my doubts about how they are being marketed.  Marketing “open 1 beds” as a true one bedroom is a bit deceiving.  They typically don’t have  a designated bedroom space with 4 walls, windows, closets and doors.  Therefore they should be called a studio.

In full disclosure, I sell studios and will continue too.  With that being said it has to fit the “lifestyle” of the buyer.  Making sure a studio is right for you can take time and getting to know the space before jumping in.   Studios are a popular purchase for:

• First time buyers
• Second home purchases
• Investments for seasonal executives
• Buyers looking for a “hotel” type experience
• Buyers looking for a lower “cost” of entry

For the rest of us, it might not fit our lifestyle.  So, in my opinion, get intimate with the space before you purchase.   When investing, you need to think about the future and not just the impact the place will make on you today.  Understanding what your buying profile will look like when you decide to sell is very important.

Don’t take this post as  a negative on what the Gallery is offering.  I think it is a phenomenal building in a convenient location.  I also think it was built well.  Just do your homework.  If you need help analyzing your options, we are always happy to help.

GALLERY QUICK FACTS:

• Concrete and Steel
• Built by PCL Construction
• Developed by Schnitzer West
• Unique home plans
• Distinctive common areas
• Designed by Markie Nelson Interior Design
• Landscaped grounds
• Street-level retail
• Solid concrete and steel construction with brick, composite metal, and lap siding
• Secured ProxCard access entrance
• 24/7 full-service concierge
• Storage
• Two-story lobby with marble floors and rotating art
• Fully enclosed garage with controlled access
• On-site surveillance
• Dog area

AUCTION DETAILS

• Minimum bids start at $175,000 & $295,000
• Auction Date March 5th
• Grand Hyatt Seattle
• 25 units (open one bedrooms)

Click here to view active listings at Gallery

Click here to review the sold listings at Gallery

Click here to read our review on Gallery

AUCTION PRICE SHEET

Gallery is having their second condo auction.  If you remember, they had a highly publicized auction back in September of 2009.

Quick Facts:

• Minimum bids start at $175,000 & $295,000
• Auction Date March 5th
• Grand Hyatt Seattle
• 25 units (open one bedrooms)

  Click here to view active listings at Gallery

Click here to review the sold listings at Gallery

Click here to read our review on Gallery

Read More From The Press Release:

SEATTLE (January 26, 2011) – Gallery Condominium, LLC has saved the best inventory for last of its new Belltown condominium homes. Accelerated Marketing Partners (AMP) will launch the final close-out of the new home inventory. The auction will be held on March 5, 2011 at the Grand Hyatt in downtown Seattle, providing a rare opportunity for prospective homebuyers to purchase a new condominium at steeply discounted prices. Gallery is currently more than 80 percent occupied, due in large part to the highly successful auction AMP conducted in September of 2009.

Situated at 2911 Second Avenue, Gallery offers outstanding views of Elliott Bay, the Space Needle and Mount Rainier. Several homes slated for auction at this one-day event are the open, one bedroom/one bath plans with a variety of square footage layouts. These homes are ideal for the professional, empty nester, and as well as the perfect pied a terre for very special “city” living. The innovative designs offer maximum use of space, ranging in size from approximately 571 to 672 square feet. Buyers can choose from a number of configurations to define living areas and bedroom areas. Included in this sale is also a new one bedroom/one bath plus den at approximately 883 square feet with exceptional views of Elliott Bay.

Prior to the auction, prospective buyers will have an opportunity to view all available auction units as well as fully furnished models and examples of the partitioned, open floor plans. The Auction Information Center and models will be open daily from 10 am to 5 pm with extended hours on Thursdays until 7 pm. Additional information is available at www.AuctionTheGallery.com or through Gallery’s auction concierge services at 1-888-982-8988.

“This exciting auction opportunity will be the last chance to allow homebuyers to determine value within this successful new residential Seattle condominium development. Home buyers can feel comfortable and confident they are participating in a transparent bidding process,” said Ken Stevens, west coast CEO of Accelerated Marketing Partners, a national, full-service real estate firm that conducted the previous launch auction events at Gallery and its sister property, Brix.

Ideally located at the north end of Belltown, Gallery is perfectly situated to capture Space Needle views to the east and Elliott Bay panoramas to the west. Gallery features abundant amenities within its concrete and steel frame construction, customized floor plans and upscale finishes. Features of these homes include European-styled kitchens with custom cabinetry, slab granite or microcrystal countertops and premium stainless steel appliances; floor to ceiling windows; hardwood floors; and generous balconies.

Amenities include a full-service concierge staff, a two-story lobby, Owners Lounge, an exclusive Supper Club and Sky Lounge. Whether entertaining a large crowd or hosting an intimate dinner for eight, Gallery is designed to accommodate.

Have you used walkscore yet?

It is a super resourcful technology that allows you to see the neighboring amenities from a particular address.  If you are a boomer looking for walkability or a young professional hoping to be surrounded by the cities best restaurants and nightlife, Walkscore can be a perfect step in the evaluation of your condo purchase. Restaurants, grocery stores, coffee shops and bus stops are just a handful of categories that it can track.

As every major city moves towards more urbanization, analyzing your proximity to neighborhoods businesses is really important. If not for you, it has the possibility of influencing the next round of buyers when you decide to sell. Other considerations, especially in the Seattle market have to be understanding your proximity to the light rail. As the rail system gains more popularity, wouldn’t you want to take advantage by doing your homework ahead of time?

I thought I would share an example of an actual Seattle condo so that you can see the impact of using Walkscore. As you notice in this example it shows you the proximity of schools, restaurants, parks, coffee shops, transit and more.

2200 Westlake

For those of you interested in Gallery, they are offering a 3% buyers bonus.  According to their announcement this is on all new contracts written between 9/7/10 – 10/31/10, closing by 11/30/10.

Other Notes:

• Gallery is FHA approved
• Gallery is 75% sold

Gallery Condominiums in Belltown have announced a new incentive program for purchases made between now and August 31st 2010.  See below for more details:

This is a fun post for me to write.  I have been so excited to share with you some recent updates to the blog.  As you will see in the picture below, we have added a category of links titled “UCS Exclusive Sites”.  I think this is an incredible addition to the site.

For the last 2 months, I have been working tirelessly on building individual sites for the major condominiums projects in Bellevue and Seattle.  The objective was to bring each project to you!  This hyper-local approach, delivers “building” specific information.  Each website is loaded with great info.  You can search units for sale, units that have sold and within a few weeks you’ll be able to search for rentals as well!  In addition, you will find the following:

• Neighborhood information
• Amenities
• Walkscore and much much more.

Each site is fairly interactive as well.  For example, if you want UCS to send you listings in your favorite building, just fill out the email notifications form and you will receive new listings immediately when they hit the market.  As an owner you will also be able to keep tabs on the units that are for sale in your building.  We will be adding new features to the site as time goes on. For now, my hope is that you enjoy what has been created.  Please spread the word!  I’m very excited to get your feedback.  See below for a list of all the websites offered at this time:

Here is an example of the website for the Vine!

These are where the website links are located in UrbanCondoSpaces (see the picture below):

Eastside/Bellevue Condos:

Bravern Condos
Bellevue Towers
One Lincoln Square
One Main Street Condos
Astoria Condos
Washington Square
Kirkland Central

Seattle Condos:

Trace Condos and Lofts
Brix Condos
Eastlake Condos and Lofts
Enso Condominiums
Veer Lofts
2200 Westlake
The Cosmopolitan
5th and Madison
Escala Condos
1521 Condominiums
Cristalla Condos
Bellora Condos
Concord  Condos
The Vine
The Parc
Mosler Lofts
Madison Lofts
Gallery

Gallery, located at 2911 2nd Ave is a concrete and steel structure that hit  Belltown with a splash.  Developed by Schnitzer West, and designed by architects Mithun Architects + Designers + Planners this 13-story community is comprised of 233 units.  Built by PCL Construction, Gallery consists of a variety of floorplans including 18-foot ceiling sky lofts, two-story units, one-plus dens, open-one bedrooms, traditional one bedrooms, traditional two bedrooms, townhomes and penthouses.With an abundance of amenities, a variety of floorplans, and a great location Gallery should continue to be a good project for buyers looking to live in Belltown.

• Unique home plans
• Distinctive common areas
• Designed by Markie Nelson Interior Design
• Landscaped grounds
• Street-level retail
• Solid concrete and steel construction with brick, composite metal, and lap siding
• Secured ProxCard access entrance
• 24/7 full-service concierge
• Storage
• Two-story lobby with marble floors and rotating art
• Fully enclosed garage with controlled access
• On-site surveillance
• Dog area

UCS EXCLUSIVE WEBSITE
________________________________________________________
www.condosatgallery.com

UCS PROJECT GRADE
________________________________________________________

WALKSCORE
_________________________________________________________

Brix and Gallery are reporting some immediate success since they have established new pricing.  According to their e-mail blasts, they have sold 5 units at Brix and 4 units at Gallery.  I have attached the e-mails for your reference.  Is this a part of the Auction buzz or pricing that is finally meeting the expectations of Seattle buyers?

Gallery condominiums just released new pricing.  This is the first release since the Auction last Sunday.  As you will see on their e-mail blast, they focused on pricing this inventory in-line with what was sold at the Auction.

http://www.auctionthegallery.com/

As always, please feel free to contact me with any questions. jreynolds@urbanimg.com